...that this 'demo' does not show anything of what the article claims, namely firmware 2.0 unlocking or jailbreaking.

Nothing of the sort was revealed on Friday, and in fact, even the developer acknowledges not having a 3G iPhone, or iPhone 2.0 firmware yet.

I guess this is the usual shoddy standards of reporting inaccuracies that MacNN is making itself a name with.

unlocking the beta is one thing, unlocking the final v2.0 or an out of the box 3g iphone (presumably new bootloader) is quite another..

Like I'm trusting ZiPhone with my iPhone again. THINK AGAIN!

iPhone 1.0 could be had for $400, and if you didn't want to activate it, you didn't have to; you could jailbreak it, unlock it and use/sell it anywhere.

IPhone 3G will only be sold in stores, together with that two-year ball and chain. Once you buy that iPhone and sign that 2-year contract, why would you want to sell it? Who would buy it? For how much if it's going to be available on practically all other networks?

I have a feeling there won't be many takers for the new ZiPhone...

ZiPhone is still useful not only for those that don't upgrade to the HSPA iPhone and continue using the EDGE iPhone but also for those that want to use travel SIM cards on either iPhone version when roaming outside their country or GSM carrier network coverage. Canadians for example get severely ripped off when traveling internationally. Rogers just came out with international roaming packages for voice and data for their customers but the packages are still high priced for the average consumer.

The original iPhones are still running all over the place and they qualify for a free upgrade to 2.0. ZiPhone could be useful to them yet. It could also raise the value of the first gen iPhones.

The general feeling in the hacker community is that ZiPhone is the WORST of the jailbreaking/unlocking apps. To be avoided at all costs. Think PwnageTool!

The point on the 3G iPhone is:
1) Buy it for $200, sign up for required overpriced services.
2) Wait 2 months.
3) Discontinue service, forking over $175 (or whatever it is) fee.
4) Now unlock phone. You've got an iPhone for the price of the old, unlocked, and ready to go.

But I guess if you live in the world where you feel all your needs will be satisfied by what Apple thinks you should be able to put on the phone, and have no problem paying $30 for a data package you might not need (or can even use), then you're probably correct in saying it is useless.

"...if you live in the world where you feel all your needs will be satisfied by what Apple thinks you should be able to put on the phone..."

find another shtick, this one has grown old and bitter.

i agree with testudo's argument. Never thought that would happen, but he is right on this one.